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Standards Act

Learning Objectives
4.4 Define the groups within which workers are classified.
4.5 Discuss the concept of Exempt - Nonexempt labour.
5.1 Describe the laws affecting the design of the wage structure, work
opportunities, and the economic security of employees with specific
reference to the impact of the Employment Standards Act and the Pay
Equity Act and the Income Tax Act on compensation policies in Ontario.
5.3 Discuss the tenets of the Ontario Human Rights Code, Ontario's Pay
Equity Act and the Employment Equity legislation and explain how they
apply to employment situations.


The Employment Standards Act

Sets minimum terms of employment
Applies to employees only

Special rules apply to certain industries and jobs

EmployER and EmployEE:
Cannot go below the ESA standard
Can negotiate a higher right or benefit and the
higher right or benefit applies*


ERs General Obligations

To display Ministry poster containing key EE rights (s. 2)

What You Should Know:

To keep specific records (s. 15)
To pay wages (s. 11)

To provide Statement of Wages (s. 12)*

Deductions from Wages (s. 13)

1. Statutory deductions (e.g. income tax. C.P.P. deductions)
2. Court ordered deductions (e.g. support orders)
3. With specific written authorization
- but not for faulty work or for cash or lost property if
employee did not have sole access to it.

Minimum Wages (s. 23)

ER required to pay at least the minimum wage (Regulation 285)
General minimum wages is:
March 31, 2008 - $8.75
March 31, 2009 - $9.50
March 31, 2010 - $10.25

Special minimum wage rates e.g. students under 18, waiters who serve

Where EE is NOT paid by the hour:

Eric worked 40 hours in one week and earned $280 in
Erics ER owes him ?

Calculating Minimum Wage

Eric earned $7.00 per hour ($280 divided by 40).

ER owes Eric $2.50 more per hour. 40 hours x

$2.50 = $100.00.

Hours of Work

of work separate issue from

overtime premium pay

Normal Rule - maximum 8 hours in a

day (or established regular work day if
more) and 48 hours in a week.
Written excess hours agreements
(agreement to vary)

Overtime Pay(s.22)
At a minimum, ERs must pay one and one-half times regular rate for
all hours worked beyond 44 hours in work week
Joe makes $12.00 an hour. Every hour worked after 44 hours in a
week he must earn at least $18.00.
Managers and supervisors are exempt.

Exemption from Overtime Pay
Employees who perform work that is supervisory or managerial in
character and who may perform non-supervisory or non-managerial tasks
on an irregular or exceptional basis

Butler pg. 178 of employment law textbook

Overtime Pay for Salaried (nonmanagerial) Employees

Sharons salary is $550/week. She worked 52 hours this work week.

How much overtime pay is she entitled to?

Overtime Pay for Salaried (nonmanagerial) Employees

To determine hourly rate, divide salary ($550) by :

$550 divided by 44 hours = $_12.50_/hour.

Sharons overtime rate is 1 1/2 x $12.50 or $_18.75.

_$18.75 x 8 hours = $150 overtime pay (in addition to her $550
salary for that week)

Vacation - ss. 33-40

Vacation pay and vacation time are separate

Vacation time is earned through service

Vacation pay is based on earnings*

Vacation Time
After 12 months of employment, employee is
entitled to: 2 weeks annual vacation

Inactive service counts

EE and ER may agree, in writing, to take vacation in
periods of less than one week (agreement to vary)

Vacation Pay
4% of earnings earned in 12 months for which
vacation is given
Jamie earns $40,000 per year. Her vacation pay is:


Public Holidays - s.24-32

9 public holidays

New Years Day,

Good Friday,

The only qualification: EE must

work the regularly scheduled day
before and after public holiday
(unless EE has reasonable cause
for not working those days)

Victoria Day,
Canada Day,
Labour Day,
Thanksgiving Day,
Christmas Day,
Boxing Day
Family Day

Calculating Public Holiday Pay

Take total amount of regular wages and vacation pay
payable to the EE in the four work weeks prior to the
work week in which the public holiday occurs and divide
by 20.
Farida earns $100 /day. Over four weeks she earns
$2000. Her public holiday pay is $100 ($2000 divided by